Highlights

 

Gross Regional Domestic Expenditure, 2013 to 2015

Release Date: 11 August 2016
 
1.  Overall Performance
 
1.1 Total Gross Regional Domestic Expenditure (GRDE) 
 
The total gross regional domestic expenditure (GRDE) in 2015 was valued at  Php 7,593.8 billion at constant 2000 prices, 5.9 percent higher than its 2014 level of Php 7,170.4 billion. GRDE is the sum of all final uses of goods and services in the regional economies during the year.   
 
Among the major island groups, Visayas topped in terms of growth in 2015 posting 6.6 percent growth compared to last year’s 5.9 percent. Luzon and Mindanao posted positive growths of 6.0 and 5.4 percent, respectively in the same period (Figure 1).
 
 
 
 
Luzon continued to get the lion’s share of the country’s expenditures accounting with almost three fourths or 73.2 percent of the total expenditures. On the other hand, Mindanao and Visayas in 2015 contributed 14.4 percent and 12.4 percent of the total GRDE, respectively. 
 
The biggest contributor to the 2015 GRDE growth was the Luzon group, with NCR and Other Luzon contributing 2.4 and 2.0 percentage points, respectively to the national growth of 5.9 percent during the year. The Mindanao and Visayas island groups likewise contributed 0.8 and 0.7 percentage points, respectively to the total domestic expenditures.
 
All regions recorded positive growth except for ARMM which declined by 0.8 percent in 2015 from 3.0 percent in 2014. Among the regions, Bicol Region posted the highest growth in 2015 at 8.4 percent from 4.3 percent. This was followed by: Western Visayas, 8.3 percent from 5.2 percent; Davao Region, 7.9 percent from 9.3 percent; Zamboanga Peninsula, 7.2 percent from 6.6 percent; NCR, 6.6 percent from 5.9 percent; CALABARZON, 5.9 percent from 5.1 percent; Northern Mindanao, 5.5 percent from 7.1 percent, Central Luzon, 5.3 percent from 9.3 percent, Ilocos Region, 5.0 percent from 6.4 percent; Central Visayas, 4.8 percent from 7.8 percent; Caraga, 4.2 percent from   9.4 percent; Eastern Visayas, 3.9 percent from negative 2.4 percent; CAR, 3.7 percent from 3.3 percent; Cagayan Valley, 3.7 percent from 7.2 percent; SOCCSKSARGEN,   3.3 percent from 6.2 percent; MIMAROPA, 1.7 percent from 8.3 percent (Figure 2).
 
 
NCR topped all the other regions in domestic spending with Php 2,772.2 billion accounting for 36.5 percent of the total expenditures of the country. At second and third places are CALABARZON and Central Luzon with 17.2 and 9.3 percent of the total GRDE of the country for 2015, respectively.
 
On the other hand, ARMM and CARAGA had the least share to total expenditures with 0.7 percent and 1.3 percent, respectively.
 
 
2. Sectoral highlights
 
2.1. Household Final Consumption Expenditures (HFCE)
 
2.1.1 Total HFCE
 
The country’s household final consumption expenditures (HFCE), which comprised   69.3 percent of total expenditures, amounted to Php 5,264.1 billion in 2015, 6.3 percent higher than the previous year’s level of Php 4,952.2 billion.
 
In terms of the country’s island groupings, Visayas recorded the highest HFCE growth at 7.0 percent with Luzon and Mindanao groups closely following with 6.6 percent and 4.5 percent, respectively.
 
Bicol Region posted the highest growth of 8.1 percent, an acceleration from its 2014 growth of 2.5 percent. Western Visayas and Davao Region came in second and third at 7.8 percent and 7.6 percent growth, accounting for 6.5 percent and 4.0 percent of total HFCE, respectively.  On the other hand, the region with the least HFCE growth was ARMM with 1.1 percent (Figure 3).
 
 
NCR remained as the highest spending region on consumer goods and services at    Php 1,230.0 billion or 23.4 percent of the national HFCE. Trailing behind are CALABARZON and Central Luzon at Php 853.3 billion and Php 646.1 billion, accounting for 16.2 percent and 12.3 percent, respectively to total HFCE.
 
Meanwhile, ARMM was the least spending region with its total HFCE level reaching   Php 75.8 billion, representing 1.4 percent of the national HFCE. CAR and CARAGA likewise remained to be the low spending regions at Php 85.6 billion and Php 84.4 billion, both contributing 1.6 percent to the total.
.
 
2.1.2 Per Capita HFCE
 
CALABARZON per capita posted the highest expansion in real terms at 7.6 percent valued at Php 60,402 in 2015. NCR was next at 7.1 percent with Php 97,219. On the other hand, ARMM declined in per capita HFCE in real terms at 5.2 percent (Figure 4).
 
  
 
 
2.2. Government Final Consumption Expenditures (GFCE)
 
Government final consumption expenditures accelerated to 7.8 percent in 2015 from last year’s 3.3 percent growth. This year’s recorded expenditures reached Php 785.3 billion due to the increase in government’s maintenance and other operating expenses (MOOE) (Figure 5).
 
 
Among the three major island groups, for two consecutive years, Visayas group posted the highest growth in 2015 at 9.0 percent; Mindanao group at 8.4 percent and Luzon group at 7.4 percent.
 
All regions posted positive growths with Ilocos Region posted the highest growth in 2015 at 11.8 percent from 10.2 percent. This is followed by: Cagayan Valley at 10.0 percent from 7.6 percent; and Zamboanga Peninsula at 9.7 percent from 4.5 percent. Meanwhile, the three lowest regions were: MIMAROPA, 6.1 percent from 6.0 percent; NCR, 6.5 percent from negative 0.2 percent; and Caraga Region, 7.0 percent from 4.2 percent.
 
Among all regions, the share of NCR was the highest which accounted for 47.8 percent or almost half of the total government expenditures. The next top three regions were: Central Luzon; CALABARZON; and Western Visayas which accounted to 5.9 percent, 5.8 percent and 4.5 percent share, respectively to total GFCE. On the other hand, CAR, Caraga and MIMAROPA were the regions with the lowest registered shares of 1.8 percent, 1.9 percent and 2.0 percent, respectively.
 
2.3. Gross Domestic Capital Formation (GDCF)
 
Total gross domestic capital formation amounted to Php 1, 805.3 billion in 2015 accelerated to 15.1 percent from 5.2 percent in 2014. Meanwhile, fixed capital formation valued at Php 1, 757.3 billion grew faster to 15.2 percent in 2015 from 6.2 percent during the previous year.
 
2.3.1   Construction
 
Investments in total construction amounted to Php 688.5 billion in 2015, up by 8.9 percent compared to Php 632.2 billion in 2014. Among the major island groups, Luzon (excluding NCR) cornered most of the investments in construction with 39.2 percent share of the total investments in construction. Visayas, meanwhile received 21.3 percent of the total construction investments while Mindanao received for 19.7 percent. Of the three island groups, Gross Value of construction grew the fastest in Mindanao, accelerating to 13.4 percent in 2015 from 15.3 percent in 2014. Construction GV in Luzon grew slightly faster in 2015 to 8.7 percent from 3.6 percent in the previous year. Construction GV in Visayas, meanwhile, slowed down to 5.5 percent from 17.1 percent in 2014.
 
Construction investments in Western Visayas grew the fastest in 2015 with a recorded growth of 57.8 percent, an acceleration from its 14.5 percent growth in 2014. This was followed by Zamboanga Peninsula with 56.0 percent from 16.7 percent, and Bicol Region with 40.3 percent from 2.8 percent (Figure 6).
 
 
NCR continued to lead total construction investments with 19.8 percent share, followed by CALABARZON with 14.2 percent and Central Luzon with 10.4 percent. On the other hand, ARMM had the least contribution to total investment at 0.2 percent.
 
Growth in Public Construction rebounded to 19.0 percent in 2015 from a decline of 1.4 percent in 2014. Public Construction in Central Luzon grew the fastest in 2015, rebounding to 88.7 percent from negative 15.5 percent in the previous year. ARMM registered the second fastest growth in Public Construction at 86.8 percent, while at third was Davao Region with 68.1 percent.
 
Private construction, which accounted for 80.0 percent of total investments in construction, slowed down to 6.5 percent from 11.1 percent. Western Visayas posted the highest growth with 84.1 percent from 8.0 percent in the previous year followed by Zamboanga Peninsula and Bicol Region with 60.9 percent and 40.5 percent, respectively.
 
2.3.2 Durable Equipment (DE)
 
Real investments in durable equipment accelerated to 21.8 percent growth from 4.4 percent as all regions exhibited growth in their investments.
 
Mindanao posted the highest growth rate of 32.7 percent while Luzon and Visayas gained double digit growths of 21.1 percent and 15.6 percent growth respectively. Other Luzon posted a 25.1 percent from negative 55.7 percent while NCR rebounded by 17.7 percent from negative 6.8 percent.
 
Among the regions, NCR accounted for 43.3 percent of the total DE investments, the largest share among regions. Other regions with notable expansion in real investments in DE are: CALABARZON, with a share of 26.2 of the total investments in DE, turned around to 22.0 percent growth from negative 4.4 percent; Central Luzon, a share of 10.8 percent, posted a growth of 39.3 percent from 62.5 percent; Central Visayas, merely maintained a growth of 21.0 percent from 21.2 percent; and, SOCCSKSARGEN, 22.0 percent from 182.9 percent (Figure 7).
 
 
2.3.3 Breeding Stocks and Orchard Development
 
The combined investments on breeding stocks and orchard development grew from negative 1.3 percent to 2.0 percent in 2015. The total value of investments amounted to Php 99.3 billion, higher than the 2014 level of Php 97.3 billion.
 
Luzon continued to lead in investments in breeding stocks and orchard development with 63.2 percent, followed by Mindanao group with 21.2 percent and the Visayas group with 15.6 percent. Investments in the Visayas recovered by 3.2 percent from the negative   8.5 percent in 2014, while the Mindanao group continued to accelerate by 2.0 percent from 1.1 percent in 2014. Luzon rebounded by 1.8 percent from negative 0.2 percent in 2014.
 
Among the regions, Central Visayas posted an increase of 20.2 percent. This was followed by CARAGA and Central Luzon which grew by 15.9 and 7.3 percent, respectively. Meanwhile, ARMM, Western Visayas and Eastern Visayas regions posted negative growths of 10.4 percent, 3.9 percent and 2.7 percent, respectively (Figure 8).
 
  
 
2.3.4 Intellectual Property Products 
 
Intellectual Property Products (IPP) includes expenditures on research and development, mineral exploration, computer software and databases, and entertainment, literary or artistic originals.
 
Expenditures on IPP amounted to Php 56.3 billion in 2015, 21.4 percent higher than the Php 46.4 billion recorded in 2014.  All major island groups have decelerated growths with Visayas leading the group at 39.0 percent, followed by Mindanao at 33.8 percent and other Luzon at negative 2.0 percent. Meanwhile, NCR accelerated to 23.1 percent from 19.4 percent in 2014.
 
 
By region, Zamboanga Peninsula is the region with the highest recorded growth in 2015 at 159.9 percent. It was followed by MIMAROPA and Western Visayas with decelerated growths of 86.0 and 59.6 percent from 158.8 and 105.3 percent, respectively. Meanwhile, NCR grew by 23.1 percent in 2015 (Figure 9).
 
 
Among the regions, NCR has the biggest share to total IPP, growing at 85.6 percent in 2015.
 
2.3.5 Changes in Inventories (CIN)
 
For two consecutive years, Changes in Inventories posted additions which amounted to Php 48.0 billion and Php 42.8 billion in 2015 and 2014, respectively.   
 
By major island groups, Luzon recorded additions of Php 23.3 billion in 2015 from higher additions of Php 38.5 billion in 2014 while Visayas and Mindanao registered additions of Php 20.2 billion and Php 4.5 billion in 2015 from lower additions of Php 3.3 billion and Php 955 million in 2014, respectively.
 
Among the regions, 10 regions posted additions in their inventories in 2015. The top three among those were Central Luzon posting an amount of Php 35.1 billion;Eastern Visayas with Php 23.8 billion; and SOCCSKARGEN with Php 10.5 billion additions. The three regions that recorded the largest withdrawals were CALABARZON with Php 16.4 billion; Bicol Region with Php 10.1 billion; and 
Davao Region with Php 5.3 billion.
 
2.4 Net Exports
 
Net exports in 2015 amounted to Php 261.0 billion from Php 78.9 billion in 2014. Among the regions, four regions recorded higher net exports: NCR, Php 588.2 billion; CALABARZON, Php 56.2 billion; Davao Region, Php 11.9 billion; and Northern Mindanao, Php 5.0 billion.
 
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Gross Regional Domestic Expenditure by Year Published

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